Vanguard Industrials Index Fund ETF Shares (VIS)

Overview

The Vanguard Industrials Index Fund ETF Shares (VIS) seeks to track the performance of the MSCI US Investable Market Industrials 25/50 Index. This ETF provides diversified exposure to the US industrial sector, encompassing companies involved in machinery, aerospace and defense, electrical equipment, and transportation infrastructure.

Reputation and Reliability

Vanguard is a globally recognized leader in the investment management industry, known for its commitment to low costs, investor advocacy, and broad range of investment products, including ETFs and mutual funds.

Management Expertise

Vanguard's ETFs are managed by its experienced investment stewardship team, which leverages Vanguard's robust quantitative research and operational infrastructure to ensure accurate index tracking and efficient fund management.

Goal

The primary investment goal of the Vanguard Industrials Index Fund ETF Shares is to provide investors with long-term capital appreciation by mirroring the performance of the MSCI US Investable Market Industrials 25/50 Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive investment strategy, aiming to replicate the composition and performance of its underlying benchmark index.

Composition The ETF primarily holds a diversified portfolio of common stocks of companies classified within the industrial sector of the US equity market.

Market Share: Specific market share data for individual ETFs is proprietary and not publicly disclosed. However, Vanguard ETFs generally hold significant market share due to the firm's strong brand and low-cost offerings.

Total Net Assets (AUM): 7200000000

Key Competitors

• Industrial Select Sector SPDR Fund (XLI)
• iShares U.S. Industrials ETF (IFRA)
• Invesco S&P MidCap 400 Pure Industrial ETF (ROBO)

Competitive Landscape

The US industrial sector ETF market is highly competitive, dominated by established players like State Street Global Advisors (XLI) and BlackRock (IFRA). Vanguard's VIS competes primarily on its low expense ratio and broad diversification within the industrial sector. Its advantage lies in Vanguard's reputation for cost efficiency and investor trust. A potential disadvantage could be that its tracking index might not always capture the most dynamic sub-sectors as nimbly as some more specialized ETFs.

Historical Performance: Year-to-Date: 8.50%, 1-Year: 15.20%, 3-Year: 7.80%, 5-Year: 11.50%, 10-Year: 10.10%

Benchmark Comparison: The Vanguard Industrials Index Fund ETF Shares aims to closely track the performance of the MSCI US Investable Market Industrials 25/50 Index, with minor deviations due to expenses and tracking error. Historical data indicates the ETF generally performs in line with its benchmark.

Expense Ratio: 0.001

Average Trading Volume

The ETF exhibits robust average daily trading volume, ensuring ease of buying and selling for investors.

Bid-Ask Spread

The bid-ask spread for this ETF is typically narrow, indicating efficient trading and minimal transaction costs for market participants.

Market Environment Factors

The performance of the Vanguard Industrials Index Fund ETF Shares is influenced by macroeconomic factors such as GDP growth, inflation, interest rates, and global trade policies, as well as sector-specific trends like technological advancements in automation, demand for infrastructure projects, and geopolitical stability impacting defense spending.

Growth Trajectory

The industrial sector generally exhibits steady growth tied to economic expansion. Changes in strategy and holdings are minimal as the ETF passively tracks its index, with adjustments made only to reflect index rebalancing or constituent changes.

Competitive Edge

The ETF's primary competitive advantage stems from Vanguard's industry-leading low expense ratio, making it a cost-effective option for investors seeking broad exposure to the US industrial sector. Its extensive diversification across various industrial sub-sectors also mitigates single-stock risk. As part of Vanguard's reputable platform, it benefits from strong investor trust and efficient operational management.

Volatility

The historical volatility of the Vanguard Industrials Index Fund ETF Shares generally aligns with that of the broader industrial sector and the equity market, exhibiting moderate fluctuations. Over the past year, its standard deviation was approximately 18%.

Market Risk

The ETF is subject to market risk due to its equity holdings, including economic downturns, changes in consumer and business spending, regulatory changes, and geopolitical events that can impact industrial production and demand. Specific risks also include the cyclical nature of some industrial sub-sectors and potential supply chain disruptions.

Ideal Investor Profile

The ideal investor for the Vanguard Industrials Index Fund ETF Shares is one who seeks diversified exposure to the US industrial sector as part of a broader equity portfolio, has a long-term investment horizon, and prioritizes low investment costs.

Market Risk

This ETF is best suited for passive index followers and long-term investors who want to gain exposure to the industrial sector without active management. It is less suitable for active traders seeking short-term gains or those looking for specialized exposure to niche industrial sub-segments.

The Vanguard Industrials Index Fund ETF Shares (VIS) is a passively managed fund offering broad diversification within the US industrial sector, tracking the MSCI US Investable Market Industrials 25/50 Index. It is backed by Vanguard's reputation for low costs and investor advocacy. The ETF is suitable for long-term investors seeking cost-effective exposure to this economically sensitive sector, though it carries inherent market and sector-specific risks.

Data Sources:

• Vanguard Investor Relations
• MSCI Index Data
• Financial Data Aggregators

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.